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New legislation gives district heating subsidies to service provider instead of producer

The Parliament on Tuesday approved a bill on Monday under which government support on district heating will be paid to the service provider, not the producer.

The bill aims to offer incentives to district heating suppliers to get their heat from cogeneration plants, while at the same time keeping retail district heating prices stable, the national development ministry said in its description of the bill submitted by minister Fellegi to Parliament on September 16.

The bill will come into force on October 1, the same date on which the central regulated district heating prices come into effect.

Legislation approved earlier this year gave the government power to set a maximum for district heating fees, similar to the central regulation of retail electricity and gas prices provided under the so-called universal service. The upper limit is applicable nationwide as are the rules applying to structure of district heating prices.